Kenya to Remove VAT Exemptions on Essential Goods, Risking Higher Costs for Consumers
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The Kenyan government plans to remove VAT zero-rating on essential goods based on IMF recommendations.
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This tax reform aims to increase government revenue but may increase costs for consumers.
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The proposed changes would remove VAT exemptions on items like maize flour, bread, cooking gas, and medicines.
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The reforms have been pushed by the IMF for a decade to boost revenue and remove blanket tax reliefs.
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The changes are set to take effect by July 2024 as part of wider tax reforms in Kenya.